A new report has revealed that Australians are starting to cut back on luxury items including dry cleaning, expensive restaurants, designer fashion, cars and quite a few others.

Interestingly, charity has been included in this list. We donate to charities we feel passionate about because we can afford it and generally when there is a real need. I am not sure if charity should be included as I personally do not see it as a luxury.

MsPennyPincher and I have never been one to indulge to this extent so it’s all a bit foreign to us, this concept of spending every dollar you have on things you don’t need. But I guess for many, it must be a shock to their system.

news.com.au reports:

AUSTRALIANS have taken the financial knife to dry cleaning, expensive dinners and donations to charities – and it’s all thanks to the global financial crisis.

And while much has been made of the “green shoots” of economic recovery, many consumers are still reining in discretionary spending and ditching over-the-top buys.

“It’s very much treat versus indulgence – that’s the theme behind this list,” said senior industry analyst with IBISWorld Michael Wilson.

Continue reading article.